Zepto Unlisted Shares
Kiranakart Technologies Private Ltd (Zepto)
INE143401011
Listing Status: DRHP Not Filed
About Zepto Unlisted Shares
Overview of Zepto Unlisted Shares
Zepto is an e-grocery company that delivers daily essentials and grocery items within 10 minutes that revolutionizes the grocery buying experience. It consistently delivers 2,500+ products in 10 minutes flat. The company’s vision is to become the go-to platform for consumers seeking quick and reliable grocery delivery, while also creating a robust supply chain and operational model that can be scaled across various markets.
Zepto Business Model
The business model of Zepto is varied and efficient. It relies primarily on dark stores, which are similar to traditional supermarkets but aren’t available to the public.
Instead, these are acquired by businesses – like Zepto – to make product delivery faster and easier. In the early days, Zepto had dark stores in Bandra and Andheri East. Later, it expanded to include Delhi, Bangalore, Mumbai, Gurugram, and Chennai.
At present, Zepto operates 350 dark stores. The business developed an efficient AI-powered system to assist with choosing, packing, and delivering products.
Funding Rounds-
Latest valuation of Zepto is $5 Billion as on Aug 14, 2024.
Announced Date |
Series |
Money Raised |
Lead Investors |
Aug 14, 2024 |
G |
$340M |
General Catalyst, Mars Growth Capital |
Jun 21, 2024 |
F |
$665M |
Glade Brook Capital Partners, Nexus Venture |
Nov 8, 2023 |
E |
$31.3M |
Goodwater Capital, Nexus Venture Partners |
Aug 25, 2023 |
E |
$231M |
StepStone Group |
May 2, 2022 |
D |
$200M |
Y Combinator Continuity Fund |
Dec 20, 2021 |
C |
$100M |
Y Combinator Continuity Fund |
Oct 31, 2021 |
B |
$60M |
Glade Brook Capital Partners |
Mar 22, 2021 |
A |
$6.5M |
Nexus Venture Partners |
Sep 1, 2020 |
Seed |
$500K |
Contrary |
Management –
Aadit Palicha
(Co-Founder & CEO)
Kaivalya Vohra
(Co-Founder & Product & Tech)
Recent Updates:
1. Zepto is reportedly raising $300 million from investors, including Indian family offices and celebrities like Amitabh Bachchan and Sachin Tendulkar. This new funding round follows Zepto’s recent $1 billion raised this year, valuing it at $5 billion. The company, competing with Blinkit and Instamart, plans to use the funds to support its expansion amid high cash burn rates due to infrastructure costs.
2. Zepto has promoted Devendra Meel to Chief Business Officer, effective July 2024. He will lead category management and strengthen brand partnerships. Previously, Meel worked with Zomato and Reliance Jio, and since joining Zepto a year ago, he scaled its ad business to significant revenue and developed Zepto Pass, now with over 5 million subscribers.
3. Zepto has promoted Nikhil Mittal, its first employee, to Chief Technology Officer. Previously Senior VP of Engineering, Mittal will work alongside Chief Product Officer Ankit Agarwal, both reporting to co-founder Kaivalya Vohra. Zepto aims to expand its tech workforce in DevOps, QA, cloud, and infrastructure, per CEO Aadit Palicha.
Insights of Zepto Unlisted Shares
Financials -
Financials (in crore) |
2023 |
2022 |
Revenue |
2024 |
142 |
EBITDA |
-1163 |
-376 |
PAT |
-1273 |
-397 |
PAT Margins |
-61% |
-280% |
While the revenue witnessed an impressive surge of 1362%
over FY22, the company grappled with a significant increase in losses,
ballooning by 226% in FY23. This juxtaposition underscores the company’s
ambitious growth trajectory amid the competitive e-commerce landscape.
Industry Overview: Quick Commerce
The quick commerce (q-commerce) industry has emerged as a fast-growing segment within the e-commerce sector, aiming to meet consumer demand for ultra-fast deliveries of daily essentials. Q-commerce companies leverage smaller, strategically located fulfilment centres or dark stores and advanced logistics to deliver products in as little as 10-30 minutes, catering to urban customers looking for convenience and speed. Here's a detailed look at the industry's development, current landscape, trends, and challenges:
- Global Market Size: The q-commerce industry is valued at approximately USD 45 billion as of 2024, and it’s expected to grow at a CAGR of 20-30% over the next five years. Key markets include North America, Europe, and Asia, with the latter showing the highest growth rates due to high smartphone penetration and urbanization.
- The quick commerce market in India currently exhibits a penetration rate of only 7% of the potential market, with a total addressable market at $45b, surpassing that of food delivery, indicating that a significant opportunity remains untapped.
- The Quick Commerce Industry In India is expected to reach USD 9.95 billion by 2029, growing at a CAGR of greater than 4.5% during the forecast period (2024-2029).
- Regional Focus: The industry has gained traction in densely populated cities across Asia and Europe, with the United States catching up. India, for instance, is a fast-emerging market with companies like Swiggy Instamart, Blinkit, and Zepto leading the charge. Europe also has established players like Getir, Gorillas, and Flink.
Peer Comparison-
SWOT ANALYSIS-
Strengths
- Speed of Delivery: Zepto’s promise of ultra-fast delivery (10-20 minutes) provides a significant competitive advantage, appealing to time-sensitive consumers.
- Young Target Market: Focused on urban millennials and Gen Z who value convenience and instant gratification.
- Tech-Driven Operations: Use of technology and data analytics for efficient inventory management, route optimization, and real-time order tracking.
- High Funding: Strong backing from venture capital, ensuring resources for rapid expansion and customer acquisition.
- Dark Store Network: Extensive network of strategically located dark stores ensures availability and speed in delivery.
Weaknesses
- High Operational Costs: Ultra-fast delivery demands significant investment in logistics, labor, and infrastructure, which can erode margins.
- Dependence on Urban Areas: Reliant on densely populated urban markets, limiting scalability in rural or less dense regions.
- Customer Loyalty Issues: Low barriers to switching as competitors offer similar services, making it challenging to build lasting customer relationships.
- Limited Product Range: Compared to traditional e-commerce, the product portfolio is often limited to essentials, reducing basket size.
- Profitability Challenges: Intense focus on growth over profitability raises long-term sustainability concerns.
Opportunities
- Expanding to New Cities: Untapped Tier-2 and Tier-3 cities present a significant growth potential as urbanization increases.
- Diversifying Offerings: Adding non-grocery items (e.g., pharmaceuticals, ready-to-eat food) can enhance revenue streams.
- Partnerships with Local Brands: Collaborations with local or regional suppliers can improve product variety and customer loyalty.
- Market Growth: The Indian quick-commerce market is projected to grow significantly, providing room for expansion.
- Tech Innovations: Leveraging AI and machine learning to further optimize delivery times and inventory management.
Threats
- Intense Competition: Rivals like Swiggy Instamart, Blinkit, and Dunzo pose stiff competition with similar service models.
- Regulatory Risks: Increasing scrutiny over labour practices and data privacy could impact operations.
- Economic Slowdowns: Changes in consumer behaviour during economic downturns may reduce demand for premium services like quick commerce.
- Rising Costs: Inflation in logistics, labour, and fuel can squeeze margins further.
- Customer Retention: Heavy reliance on discounts and promotions may not sustain loyalty in the long term
Financial Charts of Zepto Unlisted Shares
Balance Sheet of Zepto Unlisted Shares
Profit and Loss of Zepto Unlisted Shares
Ancillary of Zepto Unlisted Shares
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Zepto Unlisted Shares
-
How to buy Zepto?
Below are three ways through which you can purchase Zepto:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Zepto, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
-
How to sell Zepto?
Below are three ways through which you can sell Zepto:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Zepto, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
-
What is the price of Zepto?
We provide a two way quote on all the shares we deal in. Your buy price for Zepto is ₹ and your sell price for Zepto is ₹. The price is based on our estimates and market conditions.
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What is the lock-in period of Zepto?
The lock-in period for Zepto varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Zepto
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Zepto
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Zepto price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Zepto. The price is also determined from the most recent funding round for Zepto. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Zepto?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Zepto with us kindly click here.
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What are the financials of Zepto?
The financials of Zepto which includes the P/L of Zepto and the Balance Sheet of Zepto is in the financials section (Click on link).
-
Where can I find the annual report of Zepto?
The annual report of Zepto is available in the annual report section (Click on link).
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Is buying Zepto legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Zepto?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Zepto and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Zepto once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Zepto?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Zepto from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
Altius Investech have been featured in top media news outlets like Economic Times, Financial Express, Money control. Check out about us on these - leading publications (Click on link) Our journey over these years has not just been about numbers; it's been about building trust and reliability.
We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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